Charitable Gift Annuity

Definition from Nolo’s Plain-English Law Dictionary

A contract with a charity under which someone transfers assets to the charity in return for a promise to receive fixed payments for life (or, commonly, for the life of the donor and the donor's spouse). The donor can take an income tax deduction for part of the value of the assets given to the charity. Payments are based on how much is donated and the age of the recipients (called annuitants or beneficiaries).These annuities provide a way to make a gift to a charity, often a university, and receive income for life.